Malaysian state agency Sawit Kinabalu Group said on Tuesday it has supplied 1.5 million palm oil seeds to Indian consumer goods firm Patanjali Group as part of a five-year contract ending in 2027.Malaysia is one of the major suppliers of palm oil to India, but this marks the first time a state agency has struck a deal for supplying palm oil seeds.
The move comes as India encourages domestic cultivation of palm oil to reduce its import dependence.The contract was signed by Sawit Kinabalu Group's seeds subsidiary, which has an annual capacity to process 10 million palm oil seeds.
"We have a five-year contract signed with Patanjali Group for supplying 4 million palm oil seeds. We have delivered 1.5 million seeds so far," said Zurainy, General Manager of the group's seeds unit.Apart from supplying seeds, the company provides advisory services, agronomist site visits and monitoring of planted seed mortality, the official said.
"Our seeds grown in India are giving better yields. The plants grown in North East are in good condition," the group's chief sustainable officer Nazlan Muhammad told PTI.With the Malaysian government providing subsidies for palm oil replantation in some areas, Muhammad said the state agency has to limit seed supplies to India to meet local demand.
However, he said the state agency is keen to collaborate with more Indian companies for palm oil seed supply.Patanjali Group plans to set up a palm oil mill in Northeast India, expected to be commissioned by 2026.India currently has about 3,69,000 hectares under oil palm cultivation, with approximately 1,80,000 hectares in the fruiting stage.
The cultivation area has been steadily increasing, reaching around 375,000 hectares by 2024, with an additional 80,000 to 1,00,000 hectares expected to be added in the near term.
The government aims to expand oil palm cultivation to 1 million hectares by 2025-26 and further to 6.6 million hectares by 2030, targeting production of 2.8 million tonnes of palm oil.
The National Mission on Edible Oils, Oil Palm (NMEO-OP), launched in 2021-22, is the central government's flagship scheme to boost oil palm cultivation, focusing on Northeast India and the Andaman & Nicobar Islands.Andhra Pradesh, Telangana, and Kerala account for 98 per cent of India's palm oil production.
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